All Forum Posts by: Gurjot Grewal

I imagine it would be much cheaper in a basement right under the main floor bathroom. Looking on the forum I'm seeing around 10k as a rough number in the basement. Alot more if you're adding to the main floor. Would this be accurate in Columbus?

0 Votes

Columbus, Ohio

Quote from @Bob Stevens:

Quote from @Gurjot Grewal:

Last 3 weeks I have analyzed properties 2h daily. Some days more. Have made a few offers. I know I still have a ways to go. Nothing accepted yet. Got a great team in place, investing at a distance.

How often do you find these great deals?

I feel I might be being too picky. Should I be more flexible with my criteria ?

- post 1950 build

- In a C+ or above neighbourhood

- Cash flow positive

- single or multifamily

-5% vacancy, 10%pm, 15%(cap ex, regular maintenance)

- would prefer a quicker turnover not a full gut rehab

Been looking on market, and my agent brings me some off market deals as well. Looking for any tips to help me secure this first property. Or is this just the process and I just need to stick to it.

How often, as many as I want. I got 4 last month, all well below ARV,, All in 60k, rents for 1400, ARV About 125k, All in 55k, rent 1200, ARV about 75k, All in 70k, arv about 120k rented for 1200. ALL IN 350k, rent about 90k, arv about 450k,,,,, I can get as many as I want in my market

All the best

Those are some great numbers. Im looking to get some experience in Columbus and then expand into Cleveland. Nice to know these opportunities are more available.

1 Vote

Quote from @Andrew Postell:

@Gurjot Grewal you have some good responses above but I want to hit one something you mentioned - cash flowing. Right now it is extraordinarily difficult to cash flow. Keep in mind we make income 3 ways with rental properties - cash flow, appreciation, and principle buy down. So if I lose one of those income sources I still have the other two. When the market doesn't support cashflowing (which is does from time to time) that should mean we can pickup properties at a lower price point. So if you are expecting to cash flow $300 per month, that equates to $3,600 per year. So reduce your offer by $5,000 or so to compensate. So if I pickup a property with $50,000 of equity...that would take me 12 years to equal that in cash flow. Also keep in mind you will increase your rents next year, and the year after, and so forth. Real estate is a long term play.

I make about 100 offers per year to do 2-3 properties per year.

Hope all of that makes sense.

@Andrew Postell Thank you for the reply! Yes that makes alot of sense. I have found in my market going from 1 to 2 bathrooms adds 200-400 in rent depending on neighbourhood. From reading other posts Im making a very rough estimate of 10k for a bathroom in a basement right under the one on the main floor.

Im thinking this might be a good strategy to make up for the cash flow difficulty. Could you offer any insight on this? Have you ever successfully added a bathroom in this manner before ?

0 Votes

Quote from @Kenneth Garrett:

@Gurjot Grewal

The higher you can force equity up the better the deal. I've done many BRRRR projects unfortunately they require new kitchens, new bathrooms and at time I can add a bedroom. I like to find 2 bedroom SFH that have enough square footage to remodel to create a 3rd bedroom. Those are $20K to $50K rehabs almost flip style.

As far as getting them to cash flow it’s market dependent. I’ve bought a lot of foreclosures. They are in pretty rough shape usually but once in a while I get a small remodel and it works out great. The more rehab the project takes, the less capex and maintenance I have to calculate. Don’t just throw a random percent at each analysis really analyze per deal. You will probably start to see more deals become reality.

When I first started I was way to conservative with my numbers and could never find a deal that worked. I got better at rehab numbers, ARV and the rental market. I will say refinance rates are high now so it does create a challenge, but you can still find deals.

@Kenneth GarrettThanks for the reply! Are you adding additional bathrooms in some cases ? I have found in my market a second bathroom can get a few hundred extra in rent.

For the analysis for SFH some times the rents are 1800-2000 range, this puts my maintenance at 250-300/month. I feel this might be too high but figure better to be conservative. Do you have any tips for getting a more realistic number ? Are you breaking down the age of all cap ex items ?

Do you avoid older homes ?
Do you take on renos where you have to re do major things like plumbing/electrical ?

0 Votes

Quote from @Eliott Elias:

A lot more in this market

Im not sure why but i cannot find a deal that makes sense. Often the ARV works but the rents wont be high enough.

0 Votes

Last 3 weeks I have analyzed properties 2h daily. Some days more. Have made a few offers. I know I still have a ways to go. Nothing accepted yet. Got a great team in place, investing at a distance.

How often do you find these great deals?

I feel I might be being too picky. Should I be more flexible with my criteria ?

- post 1950 build

- In a C+ or above neighbourhood

- Cash flow positive

- single or multifamily

-5% vacancy, 10%pm, 15%(cap ex, regular maintenance)

- would prefer a quicker turnover not a full gut rehab

Been looking on market, and my agent brings me some off market deals as well. Looking for any tips to help me secure this first property. Or is this just the process and I just need to stick to it.

2 Votes

Hello BP,

I'm making my very first long-distance offer on a property using an agent. He has sent over a very long purchase contract. I read it once and will have to re-read it a couple of times. But noticed nothing outstanding. Is there anything I should be looking out for?

For my contingencies, I put, " contingent on the results of the inspection, ability to get financing, and appraisal." Do I need to be more specific with my wording?

0 Votes

@Matthew Morrow Thanks for the advice! My agent is an investor as well and seems very knowledgeable.

1 Vote

I'm currently analyzing deals daily looking for a great deal. Usually, if I believe a property has potential I will ask my agent 3 basic questions. Neighborhood grade, rental rates, does it need any repairs. This I feel helps me phase out many properties.

But there is so much more I would like to know prior to making an offer. Some listings don't have any pictures. I want to request pictures to get an idea of the condition. I need to know when was the plumbing, electrical, hvac etc last upgraded. Any information to give me a better idea of how much to offer.

I am investing from a distance so I feel it is vital for me to at least get this information. How should I go about this? I was thinking about making a spreadsheet with all my due diligence and sending it to my realtor prior to making an offer. Is this too much to ask of an agent I have not yet bought from? Is this too much to ask of a seller? Any advice is appreciated.

0 Votes

Quote from @Nathan Gesner:

Quote from @Gurjot Grewal:

In many markets we've seen rates increase as high as 50% over the past couple of years. Many Landlords don't increase rent every year and aren't even aware of market values.

@Nathan Gesner Thanks for the reply. Have you been in a situation where you purchased under market rents, and were able to up rents to match market rents? Without modification to the property?

0 Votes

Columbus, Ohio

All Forum Posts by: Gurjot Grewal

Gurjot Grewal has started 72 posts and replied 156 times.

Post: Cost of adding a bathroom in Columbus?

Post: How often do you come across a great BRRR deal?

Post: How often do you come across a great BRRR deal?

Post: How often do you come across a great BRRR deal?

Post: How often do you come across a great BRRR deal?

Post: How often do you come across a great BRRR deal?

Post: First offer contract, do I need an attorney?

Post: Due Diligence prior to making an offer

Post: Due Diligence prior to making an offer

Post: Under Market Value Rents on most postings